New Butler-Excela system lays off 13 managers

The newly merged Greensburg, Pa.-based organization made up of Excela Health and Butler Health System has eliminated 13 filled managerial jobs.

The affected employees and positions are from across both sides of the new organization, Tom Chakurda, spokesperson for the Excela-Butler enterprise, confirmed to Becker's. The positions were in various support functions unrelated to direct patient care.

"This action represents an aspect of our initiatives to reduce expenses in light of the economic pressure our industry and our system are facing," Mr. Chakurda said.

The workforce changes come amid financial challenges for both parties that make up the five-hospital system, which is yet to be permanently named. Butler reported an operating loss of more than $23 million for the six-month period ending Dec. 31, while Excela recorded an operating loss of more than $15 million in the same time period, the Tribune-Review reports. 

Excela and Butler finalized their combination in January, forming a five-hospital system that employs approximately 7,300 people, including more than 1,000 physicians. 

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